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Shop Canada's Best Business Credit Cards

Business Credit Cards

Whether you are running a major company or are an entrepreneur trying to find your way into the ever-changing business world, you need all the financial resources you can get. Credit cards allow you to track your business's spending habits and even allocate spending responsibility to employees. Your company can receive benefits and protection, and they offer the financial flexibility needed, so you don't end up mixing business with pleasure. Here's how business credit cards work.  

What They Are and Their Benefits

A business credit card is strictly intended for use by your company and not for personal use. They are available for various business types and allow you the chance to use a financial alternative as you're on the go. They enable your business to establish a credit profile, building business credit so that your business improves future credit borrowing terms.

For smaller businesses, you can get a personal guarantee that includes personal liability, which can help you structure credit terms. You get easy access to a revolving credit line with a set credit limit to make purchases and cash withdrawals. A business credit card helps you manage expenses, which helps whenever you're working out your business's accounting or taxes.

Furthermore, there are business credit card benefits that are different from the benefits offered to individual customers. You can even get cash back on purchases at stores that your business frequents. They also present larger than usual introductory card offers once you sign up. These sign-up bonuses are done in a way anticipating high business spending, with some offering no interest rate charges for a short time period. Others waive an annual fee within the first year, and have high cashback rates in the first few months or Aeroplan miles. You can also score travel benefits, which help given how much moving around you or your business may do on an everyday basis. Plus, you can score cash advances at any of your bank’s branches or at ATMs worldwide and even use it at your local Costco.

Once you establish a positive credit history, lenders will trust you more with their money, and your business's opportunities for financial support will grow over time.

How Do Business Credit Cards Work?

Unlike most fixed credit lines, business credit cards don’t require that you put up collateral to qualify for that credit line. It's easier for business owners who don't have a well-established credit history to be eligible for revolving lines of credit instead of traditional credit lines or bank loans. They can provide your business with necessary financial cushion anytime accounts receivables are slacking.

For small business owners, business credit cards provide you with online record-keeping tools to manage your accounts. These tools include a year-end account summary, which helps bookkeepers track, manage, and categorize expenses. Though there aren't as many protections as consumer credit cards will offer, you can get many rewards for your business spending in the process.

With a business credit card, you can get travel rewards and protection, including a set number of bonus miles if you spend a minimum amount over a short-term period. They also come with grace payment periods, so you get extra time to pay off your balances as well as delegated purchasing authority to track employee spending. If employee spending is in any way reckless, these cards come with liability waiver programs that protect your business against unauthorized payments. Business rewards cards allow you to maximize every dollar you spend as you can earn multiple rewards points on gas, cell phone usage, and office supplies. You can get cash back on those things too.

Considering the travel fees your business accounts for over time, you can use your business card to score discounts on airline tickets or hotel stays during business ventures. You can also receive VIP airport lounge access as well as insurance that covers you and your belongings during trips. You may also find that your business gets flexible repayment terms if your entity’s cash flow isn’t the most consistent.

These cards come with high spending limits and build financial trust between yourself and your employees.

What’s the Difference Between a Business Credit Card and a Personal Credit Card?

While a business credit card’s purpose is to separate business and personal expenses, your personal credit can be affected if you’re not careful.

Once you sign a personal guarantee for a business card, you're liable for your company's debt should you miss the required payments. This liability can kill your credit score if you're not careful or timely enough. Many credit card issuers will weigh your credit score when deciding how much credit they will allocate to you. Whenever credit activity is reported to credit card bureaus, it’s included on your credit report and credit score like consumer activity would be.

Unlike consumer cards, business credit cards don't offer a wide variety of protections for small businesses. Most card issuers provide consumer protections to small business owners as a courtesy. However, you might want to read the terms and conditions and see if those protections are thoroughly detailed. If they aren't, it may mean your business is vulnerable to exorbitant fees and headache-inducing interest charges. Spending limits for these cards help you offset these fees to some degree as you don’t have to use too much credit and can improve your credit history. You can also get improved billing cycles and even get discounts if you pay early.

Just as pertinent is that your business credit card offers you some rewards you can only dream about while using specific personal cards. You get free employee cards, more detailed reporting, and travel access that will make your business trips more enjoyable. Choosing the best business credit cards allows your business to create greater financial continuity, tracking every move your company makes in a more efficient way.


Comparing the best business credit cards in Canada on is the first step towards establishing and applying for the right card for your company. Start now!